Brazil Deficit Passes $7 Billion

Brazil’s budget deficit broke the $7 billion mark (R$15.8 billion) in December to total $28 billion (R$63.6 billion) for the year, accounting for 3.3% of GDP in 2005 compared with 2.7% in 2004. Higher interest rates, peaking in May at 19.75%, contributed to the widening deficit by driving government borrowing higher.